Developing a financial strategy in the context of an economic crisis

Issue 55, 2024

Adeliya Nussupekova, Mukhtar Yerzhanov, Alma Yerzhanova, Zhanat Abilgaziyeva

Received 10.08.2023, Revised 29.12.2023, Accepted 21.03.2024

https://doi.org/10.54919/physics/55.2024.279id8

Abstract

Relevance. The crisis currently affecting global and domestic economies clearly demonstrates the inability and unwillingness of a large number of companies to respond effectively to external changes in market processes. The accelerating cyclical nature and regularity of financial and economic crises do not lessen the importance of international companies having to develop a financial strategy as one of the most important aspects of their overall strategy.

Purpose. The goal of this article is to understand what actions companies can take to improve their market value and, consequently, capital value, in crises. It substantiates the importance of developing a financial strategy, analyses the financial performance of companies, as well as the actions and strategies undertaken by companies to maintain and improve business performance.

Methodology. The authors used the structural and qualitative analyses and synthesis methods; expert evaluations, quantitative comparisons and extrapolation methods; special tools to forecast and plan economic growth; economic and mathematical modelling technology; software, calculations, analytical developments and statistical data.

Results\Conclusions. The research results showed that аny flexible corporate transformation should focus on financial and economic management based on an analysis of the economic situation, which takes into account strategic objectives and establishes the degree of deviation that caused their results, as well as the possible impact of these deviations on financial performance. Any such analysis would consider “normal”, “pre-crisis” or “crisis” financial conditions. Thus, managers must take into account risk and other factors that determine the choice of a management decision.

Keywords: globalisation; financial management; corporate strategic management; financial stabilisation model; anti-crisis management

Suggested citation

Nussupekova A, Yerzhanov M, Yerzhanova A, Abilgaziyeva Z. Developing a financial strategy in the context of an economic crisis. Sci Herald Uzhhorod Univ Ser Phys. 2024;(55):2798-2804. DOI: 10.54919/physics/55.2024.279id8

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